Commercial insurance pricing yielded a composite index of minus 2 percent for April as compared to minus 3 percent in March and minus 4 percent in January and February 2016.

Richard Kerr, CEO of MarketScout outlined the market position, “It seems we may have a reversal of sentiment. Rates are moderating. We are only seven months into a soft market that has so far yielded a maximum composite rate decrease of minus 4 percent. This soft market may be limited in length and severity. A limited soft market would be a bit surprising noting the current ample market capacity; however, more sophisticated underwriting tools seem to be limiting market swings.”

Rates changed in most coverage classifications with property, business interruption, BOP, inland marine, workers’ compensation, general liability, and fiduciary all moderating by 1 percent as compared to March. Umbrella, auto, D&O, EPLI, crime, professional, and surety were unchanged.

Small account rates (under $25,000) were down 1 percent from March to April. All other accounts sizes were down 2 percent in April 2016 as compared to down 4 percent in March 2016.

Transportation accounts adjusted more than any other industry classification from minus 4 percent in March 2016 to minus 2 percent in April 2016. Manufacturing, habitational, public entity and energy accounts all moderated 1 percent in April. Contracting and Service accounts remained unchanged from March to April.

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.

 

About MarketScout

MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. The firm owns and operates the MarketScout Exchange at marketscout.com as well as over 40 other online and traditional underwriting and distribution venues. MarketScout founded the Entrepreneurial Insurance Alliance (EIA) in 2009. In 2012, MarketScout founded the Council for Insuring Private Clients (CIPC). MarketScout has offices in California, Connecticut, Florida, Illinois, Indiana, Nebraska, Nevada, Pennsylvania, Rhode Island, South Carolina, Texas and Washington, D.C.